1. Tiburon Peninsula Club
2010 Annual Member Meeting
Financial Review
November 16, 2010

2. Financial Review
In 2010 the TPC is having an exceptionally strong year financially for the second year in a row. This year may be the club’s best ever:
For the first time, each “activity” is profitable for the year
$1 million of debt was retired ($750k in Q / $250k in Q1-2011)
~$150k spent on club “refurbishments” / ~$150k spent on club “enhancements”
Post $1MM debt retirement, $750k of cash remains in the coffers
It’s not a coincidence that the club is having its second strong year in a row, your GM is in the second full year of his tenure…Jerry Pang and his staff have done an excellent job for our members again this year

3. TPC’s Financial Model – A Review
Two Major Constraints:
Membership roll limited by Town of Tiburon (700/175)
TPC is a multi-activity club
Operating Assumptions:
Dues pay for operations only
Five “Activities” are engineered to be financially self-sufficient (Tennis, Swim, Fitness, F&B, Youth)
An Emergency Reserve Savings Account is maintained
(set at 3 months or oper. expenses = $550,000)
Capital Replacement funds are reserved annually
(reserves for depreciation)
New member initiation $ pay for capital expenses and debt reduction

4. Dues TPC - Strategic Financial Model Initiation Fees Revenues Expenses
Non-Member
Surcharges
Initiation Fees
Monthly Debt
Retirement Fees
Revenues
Expenses
Administration
Cap-Ex and
Debt Retirement
Mortgage
Payments
Facility Operations
Activities – Set at Operational Breakeven
Aquatics
Personnel/Operations- Aqua
Activity Specific
Member Charges
Fitness
Personnel/Operations - Fit
Food/Bev
Personnel /Operations– F/B
Non-Member Activity Charges
Tennis
Personnel/Operations - Tennis
80%
Activity Fee
Youth
Personnel/Operations - Youth
20%

5. TPC - Tactical Financial Model Operating Condition “Code”
Dues
Non-Member
Surcharges
Monthly Debt
Retirement Fees
Initiation Fees
Reserve
Savings Account
(2 mos. of Ops Expense)
Operating
Cash/Checking Acct
Mortgage
Payments
Cap Ex
Cash/Checking Acct
Administration
Facility Operations
Cap-Ex and
Debt Retirement
Operating Condition “Code”
Code RED – An unexpected event wipes out Reserve Account – immediate member assessment is considered
0% of the time
Code Orange – Reserve Savings Account is Not Full; All Initiation Fees Flow into Reserve Savings until Full + Examine Expense Cuts + Consider Dues Increase
20% of the time
Code Green – Reserve Savings is full; all initiation goes toward Capital Expenses & Debt Retirement.
80% of the time
* Currently 3 months of Op Expense = $550,000

6. TPC – Capital Reserve and Accelerated Debt Retirement
Initiation Fees
$495,000
Assume Membership “roll” – 33 members/yr at “steady state”
Gross Initiation Fees non-refundable fee) - $495,000
Reserve
Savings Account
(2 mos. of Ops Expense)
To meet upkeep and replacement demands
To fund “new” Cap Ex projects
In the event of a slow new membership period, I. has preference to II. by 2:1 until $250k is deposited into I.
At the end of every year – one half of I and II balances will be applied to mortgage prepayment.
Cap Ex
Cash/Checking Acct I
Capital Reserve
“Replacement”
~$250,000/yr II
Cap-Ex
New Projects
~$245,000/yr
Half of Year
End Balance
Mortgage Debt
Retirement

7. Dues TPC Comprehensive Financial Model Initiation Fees Revenues
Monthly Debt
Retirement Fees
Initiation Fees
Dues
Non-Member
Surcharges
Revenues
Expenses
Mortgage
Emergency Reserve
Savings Account
(3 mos. of Ops Expense)
Operating
Cash/Checking Acct I
Capital Reserve
“Replacement”
$250,000/yr II
Capital Expense
New
Administration
Half of Year
End Balance
Facility Operations
Capital Expenses
Activities – Set at Operational Breakeven
Activity Specific
Member Charges
Aquatics
Personnel/Operations- Aqua
Fitness
Personnel/Operations - Fit
Food/Bev
Personnel /Operations– F/B
Non-Member Activity Charges
Tennis
Persn/Ops - Tennis
80%
Youth
Persn/Ops - Youth
Activity Fee
20%

8. 2010 Activity Performance Comparison

9. 2010 Club Finances – Snapshot Comparison

10. Looking Ahead
Operations are set to breakeven, consider small (2-3%) dues increase mid-year
The Big Five are set to breakeven – 5 of 5 confident
Undertake the Youth Tennis Center project (Rut Row!)
Re-sign our GM to a new long term contract and replace our Club Treasurer (yeah!)